Organic business growth is related to the growth of natural systems and organisms, societies and economies, as a dynamic organizational process, that for

business Business is the practice of making one's living or making money by producing or Trade, buying and selling Product (business), products (such as goods and Service (economics), services). It is also "any activity or enterprise entered into for pr ...

expansion is marked by increased output, customer base expansion, or new product development, as opposed to

mergers and acquisitions Mergers and acquisitions (M&A) are business transactions in which the ownership of companies, other business organizations, or their operating units are transferred to or consolidated with another company or business organization. As an aspect ...

, which is

inorganic growth Inorganic growth is the rate of growth of business, sales expansion etc. by increasing output and business reach by acquiring new businesses by way of mergers, acquisitions and take-overs. This kind of growth also takes place due to government di ...

. For businesses organic growth typically excludes the impact of

foreign exchange The foreign exchange market (Forex, FX, or currency market) is a global decentralized or over-the-counter (OTC) market for the trading of currencies. This market determines foreign exchange rates for every currency. It includes all as ...

. "Core growth" is the term that is used to refer to growth that includes foreign exchange, but excludes

divestitures In finance and economics, divestment or divestiture is the reduction of some kind of asset for financial, ethical, or political objectives or sale of an existing business by a firm. A divestment is the opposite of an investment. Divestiture is ...

and acquisitions. Organic business growth is growth that comes from a company's existing businesses, as opposed to growth that comes from buying new businesses. It may be negative. Through

Growth planning Growth planning is a strategic business activity that enables business owners to plan and track organic growth in their revenue. It allows businesses to allocate their limited resources toward a centered effort to adapt to changes in the industry dr ...

, businesses are able to achieve organic growth by selecting the best strategies available to them. For example, by examining Ansoff's matrix, businesses can select from market penetration, market development, product development and diversification to grow their revenue organically. In addition, organic business growth can be achieved utilizing content marketing efforts, which drive organic search traffic. Organic business growth does include growth over a period that results from investment in businesses the company owned at the beginning of the period. What it excludes is the boost to growth from acquisitions, and the decline from sales and closures of whole businesses. When a company does not disclose organic growth numbers, it is usually possible to estimate them by estimating the numbers for acquisitions made in the period being looked at and in the previous year. It is useful to break down organic sales growth into that coming from market growth and that coming from gains in market share: this makes it easier to see how

sustainable growth Sustainable development is an organizing principle for meeting human development goals while also sustaining the ability of natural systems to provide the natural resources and ecosystem services on which the economy and society depend. The desi ...

is. Relating to organic input in an organisation, it can also relate to the act of closing down cost centers through established organic methods instead of waiting for a Finance list. The mechanisms and rate of growth of firms experiencing organic growth was extensively studied by

Edith Penrose Edith Elura Tilton Penrose (November 15, 1914 – October 11, 1996) was an American-born British economist whose best known work is ''The Theory of the Growth of the Firm'', which describes the ways which firms grow and how fast they do. Wr ...

in her 1958 book ''The Theory of the Growth of the Firm''. An early reference to "organic growth" appeared in Inazo Nitobe's 1899 book ''The Soul of Japan''.
Organic Growth
is evolving to a new concept within the social media marketing of the 21st century. Social networks also do organic growth in terms of followers and social presence.

References

External links

“Organic Growth: The CEO Challenge” – An Interview with Bernie JaworskiCanadian companies favour organic growth over M&A
Business terms {{econ-stub

See also

References

External links